Toronto — Several hedge funds may have been hurt by bets on Diddy Global Inc. after stocks have fallen since a Chinese ride-hailing company announced plans to withdraw from the New York Stock Exchange.
Diddy’s share price fell 56.8 percent from the June 30 IPO price. After the company delisted from the New York Stock Exchange on Friday and announced plans to pursue a listing in Hong Kong, the slide accelerated and succumbed to Chinese regulators who were angry with their debut in the United States.
Hedge funds invested 94.4 million shares in Diddy at the end of September, down 13.2 million shares from the previous quarter, according to the US 13F filing compiled by industry tracker Symmetric.
It’s unclear if hedge funds have further reduced their investment since then, but Reuters calculates that Diddy’s stake fell 7.9% between the end of September and December 7, for a total of 6,090 from these positions. The value of 10,000 dollars will be lost.
As of the end of September, 27% of the company’s value was held by institutional investors owned by managers classified as hedge funds by Symmetric.
Symmetric points out that stocks with high ownership of hedge funds may be susceptible to liquidation by those funds during periods of stress.
Among the hedge funds that bought shares in the third quarter, Bridgewater Associates bought about 9 million shares, according to Filing.
According to Filing, Penthera Capital bought 5.4 million shares of Diddy, Owl Creek Asset Management bought 1.7 million shares, and Seven Eight Capital bought 537,145 shares. They showed that Paulson & Co. added 1.6 million shares at the end of the third quarter and Seven Eight Capital purchased 537,145 shares.
Bridgewater, Penserra, Owl Creek, Paulson and Seven Eight did not respond to requests for comment.
The Tiger Global Management and Billionaire George Soros funds also held a significant stake in Didi at the end of the third quarter, accounting for 4.7 million shares at the end of September.
Singapore’s state fund Temasek reduced its position in Diddy by 3.6 million shares as of September 30, but maintained 29.4 million shares.
Tiger and Soros did not respond to requests for comment, but Temasek refused to comment on his position.
It’s unclear if these companies are still invested, but executives of large U.S.-based hedge funds that had a small position in Diddy, who recently withdrew, are likely to return, even though many are likely to return. After saying that you are withdrawing.
“There is also the problem that individual investors and even some investment trusts cannot easily own Hong Kong-listed stocks and may be forced to sell them, which will put more pressure on them,” executives said. Said.
Public pension schemes that hold Diddy’s shares include the Canadian Pension Pension Program (CPP), the Montreal-based Caisse de d’Effia Investment Trust Bank, and the California Civil Employee Retirement Program (CalPERS).
A Caisse spokeswoman declined to comment, but CPP and CalPERS were not immediately asked to comment.
Maya Keidan
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